BEIJING, May 27 — China's industrial profits in April grew at the fastest pace since November 2023, despite financial pressures stemming from softening domestic demand and rising component costs exacerbated by the Middle East crisis.
The latest data adds to signs of an uneven recovery, with the economy largely losing momentum at the start of the second quarter.
While exports have remained a rare bright spot, most other indicators have undershot expectations, leaving firms increasingly reliant on overseas markets for growth.
The shift comes as companies navigate persistent domestic headwinds and heightened global uncertainty, with United States (US) President Donald Trump's visit to China earlier this month delivering only modest commercial and trade commitments and an agreement to build a "constructive" relationship.
The National Bureau of Statistics' data today indicated that profits at China's industrial firms rose 24.7 per cent last month from a year earlier, sharply up from a 15.8 per cent jump in March.
For the January-April period, industrial profits climbed 18.2 per cent, versus a 15.5 per cent increase recorded in the first quarter.
Exports gained steam across many sectors last month, fuelled by a global surge in artificial intelligence investment and buyers accelerating purchases amid concerns about further increases in input costs linked to the US-Israeli war with Iran.
Still, solid export performance has not been enough to offset persistent weakness at home, a trend particularly evident in the auto sector.
China's top electric vehicle maker BYD reported a 55.4 per cent decline in first-quarter profit, its steepest drop since 2020, despite record overseas sales as a share of total vehicle sales.
Meanwhile, Leapmotor, often seen as an emerging domestic rival to BYD, posted its strongest first quarter in revenue terms, driven by rising sales and a notable surge in exports, but its net loss widened compared with the year before.
Industrial profit figures cover firms with annual revenue of at least CN¥20 million (RM11.69 million) from their main operations.
